The European Public Prosecutor’s Office (EPPO) reported over 2,000 active fraud-related investigations by the end of 2024, with estimated damages totaling €24.8 billion. VAT fraud remained a significant concern, with more than half of the estimated damage linked to cross-border VAT fraud. Countries like Germany and Italy recorded the highest numbers of active investigations and significant total damages. EPPO’s Chief Prosecutor, Laura Codruța Kövesi, highlighted the attractiveness of EU fraud to dangerous criminals due to historical uneven judicial responses in this field. In November 2024, the EPPO conducted a major operation in Italy that led to the freezing of bank accounts, seizure of real estate, luxury cars, and boats from suspects involved in fraudulent trading practices.
EPPO processed 6,547 crime reports in the last year, representing a notable increase of 56% compared to the previous year. Private parties accounted for over 70% of the reports, with close to 27% coming from national authorities. However, only 1.7% of reports came from EU institutions, bodies, offices, and agencies. Despite EPPO’s efforts, there was still a lack of improvement in detection and reporting from these entities even three years after EPPO operations began. The agency emphasized the need for better cooperation and reporting mechanisms to combat financial crimes affecting the EU’s interests effectively.
By the end of 2024, the EPPO had 311 active cases related to NextGenerationEU, with 307 involving the Recovery and Resilience Facility. These cases accounted for approximately 17% of all spending fraud investigations. Fraudulent activities involving NextGenerationEU primarily revolved around the submission of false, incomplete, or misleading information to secure funds unlawfully. Tactics like forging and manipulating invoices and contracts, along with bribery and bid rigging, were used to ensure contracts with inflated prices were awarded to specific companies. These fraudulent practices pose a threat to the EU’s economic recovery efforts.
The EPPO’s work in combating financial crimes impacting the EU’s financial interests included investigations into various fraudulent activities such as money laundering, VAT fraud, and corruption. The agency’s annual report highlighted the increasing complexity and scale of fraud-related investigations, with a significant rise in the number of active cases compared to the previous year. The investigative efforts of the EPPO, including operations like “Moby Dick” in Italy, were aimed at disrupting criminal networks engaged in fraudulent practices across borders. The agency’s proactive approach and enforcement actions have led to significant seizures and account freezes, indicating progress in combating EU-related fraud.
The European Chief Prosecutor, Laura Codruța Kövesi, emphasized the importance of addressing the appeal of EU fraud to dangerous criminals and the need for a coordinated response to combat financial crimes effectively. With the significant increase in active investigations and total estimated damages, EPPO’s efforts to prosecute offenders and recover lost funds play a crucial role in safeguarding the EU’s financial interests. The agency’s focus on enhancing detection, reporting, and cooperation among stakeholders is essential to effectively combatting fraudulent activities impacting the EU budget. Improved coordination and collaboration between national authorities, private entities, and EU institutions are necessary to prevent and combat financial crimes effectively.
